By Zainab Rauf President Bola Ahmed Tinubu has submitted three major financial requests to the House of Representatives, seeking legislative...
By Zainab Rauf
President Bola Ahmed Tinubu has submitted three major financial requests to the House of Representatives, seeking legislative approval for external and domestic borrowings aimed at financing priority projects and settling pension liabilities.
The requests, contained in separate letters read on the floor of the House during Tuesday’s plenary by Speaker Abbas Tajudeen, include a $21.5 billion and €2.2 billion external borrowing plan for 2025–2026, a $2 billion foreign currency bond issuance in the domestic market, and a bond issuance of ₦757.98 billion to clear unpaid pension arrears under the Contributory Pension Scheme (CPS).
$2 Billion Domestic Foreign Currency Bonds
In the first letter, President Tinubu requested approval to issue up to $2 billion worth of foreign currency-denominated instruments within Nigeria’s domestic debt market. He said the issuance, backed by an Executive Order signed in October 2023, is in line with the Fiscal Responsibility Act and requires National Assembly endorsement.
According to the president, proceeds from the bond sale would be invested in key economic sectors to stimulate growth, infrastructure development, job creation, and boost foreign exchange earnings. He noted, however, that while the move would increase the nation’s debt burden, it is expected to diversify funding sources, stabilize the naira, and deepen the local financial market.
$21.5 Billion External Loan Plan
In a second correspondence, the president outlined the federal government’s external borrowing plan for 2025–2026, seeking approval for $21.5 billion, €2.2 billion, 15 billion Japanese yen, and €65 million in grants. The loans, Tinubu explained, are earmarked for priority projects spanning infrastructure, agriculture, health, education, water resources, security, and employment generation.
“These projects were selected through rigorous technical and economic evaluations and are designed to tackle Nigeria’s infrastructure deficit, reduce poverty, and improve food security,” the letter read.
President Tinubu added that most of the projects would be executed across all 36 states and the Federal Capital Territory.
Citing the economic pressures from subsidy removal and declining domestic revenue, the president said external borrowing was necessary to bridge funding gaps in critical areas such as power, transport, and healthcare.
₦757.98 Billion Pension Bond
In a third request, the president asked the House to approve the issuance of Federal Government bonds worth ₦757.98 billion to offset outstanding pension liabilities under the Contributory Pension Scheme as of December 31, 2023.
He attributed the arrears to years of non-compliance with the provisions of the Pension Reform Act (PRA) 2014 due to revenue shortfalls.
“The proposed bond issuance will help the government meet its pension obligations, restore confidence in the system, and enhance the welfare of retirees,” President Tinubu wrote.
He further noted that the plan, already approved by the Federal Executive Council in February 2025, would boost economic liquidity and improve morale in the public sector.
All three proposals have been referred to the House Committee on Finance for review and legislative action.
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